Not Palantir. Not SoundHound AI. This Software Specialist Could Be the Biggest Winner of the AI Productivity Boom
Twilio stock has outperformed Palantir and SoundHound AI this year, and I won't be surprised to see the trend continue.
Overview
The demand for artificial intelligence (AI) software is rising rapidly, with Gartner projecting a 60% increase in AI software spending this year to $453 billion, followed by a 41% jump next year to more than $638 billion.
This terrific growth isn't surprising, as integrating AI-focused software tools into business operations is boosting productivity. A Morgan Stanley research report noted earlier this year that companies using AI for at least a year have experienced an 11.5% increase in productivity. Not surprisingly, companies such as Palantir Technologies and SoundHound AI that sell enterprise AI software solutions have been experiencing healthy revenue growth.
Details
However, both stocks have been underperforming this year. While Palantir stock is down 3% in 2026, SoundHound AI has dropped 29%. Cloud communications specialist Twilio (NYSE:TWLO), meanwhile, has clocked impressive gains of 57% in 2026, driven by growing demand for its AI tools.
Source
Originally published at www.fool.com.